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Inheritance Tax

Volume 458: debated on Monday 19 March 2007

To ask the Chancellor of the Exchequer what his estimate is of the consequences for public revenues of reducing the rate of inheritance tax from 40 per cent. to 10 per cent., taking account of the probable behavioural impact of such a change; and if he will make a statement. (128018)

An estimate of the impact on tax revenues of reducing the inheritance tax rate to 10 per cent. from the year 2007-08 can be obtained from the ready reckoner table published by Her Majesty’s Revenue and Customs at:

http://www.hmrc.gov.uk/stats/tax_expenditures/table1-6.xls

The ready reckoner figures do not include any allowance for the impact of behavioural responses to the change; we can not provide a reliable estimate of such an impact.